Hong Kong stocks rallied, driving the city’s benchmark index to its biggest monthly gain in almost two years. Major mainland Chinese cities removed curbs on home purchases in a follow-up to Beijing’s stimulus package, brightening the recovery outlook.

The Hang Seng Index rose 2 per cent to 21,048.14 at 11.10am local time. The benchmark has advanced 17 per cent in September, heading for the best month since November 2022. The Hang Seng Tech Index gained 4.8 per cent.

Hong Kong’s financial markets will close on Tuesday for the National Day, while the onshore markets will stop trading through October 8.

Chinese developers led gainers. Longfor Group surged 14 per cent to HK$14.58 and China Resources Land jumped 2.2 per cent to HK$28.50. Alibaba Group Holding gained 6.63 per cent to HK$109.30 and rival JD.com strengthened 6.2 per cent to HK$161.40.